OTC Markets Group Reports Financial Success for 2024
Key Highlights for Fourth Quarter and Full Year 2024:
- Gross revenues reached $111.1 million for the year, marking a 1% increase compared to the previous year.
- Operating income stood at $32.2 million, reflecting a slight decline of 1% from 2023.
- Operating profit margin was recorded at 29.9%, down from 30.6% the previous year.
- Net income was $27.4 million, experiencing a 1% drop from the prior year; GAAP diluted EPS reached $2.26 as compared to $2.28 for 2023.
- A total of $29.5 million was returned to shareholders in 2024, with dividends amounting to $26.6 million and $2.9 million in share repurchases, a 1% decrease from last year.
- The company has announced its first quarter dividend of $0.18 per share for 2025.
- At year-end, there were 567 companies listed on OTCQX and 1,050 companies on OTCQB.
- 43 companies graduated to a national securities exchange during 2024.
- OtC Link ECN reported 114 subscribers as of year-end 2024, a 6% increase from 2023.
- The average daily trades increased significantly to approximately 38,000, up from 32,000 in the previous year.
- Fourth quarter gross revenues totaled $28.5 million, a 3% increase compared to the same quarter last year.
- The operating income for the fourth quarter was reported at $8.8 million, remaining steady compared to the previous year.
- For the fourth quarter, the operating profit margin was 31.6%, slightly less than the previous year’s 32.8%.
- OTC Markets Group announced that it will launch OTCID – a Basic Reporting Market – by July 2025.
- In September 2024, the company introduced OTC Overnight, enhancing overnight trading options for OTC equity securities.
- In November 2024, the MOON ATS platform was launched for overnight trading in NMS securities.
OTC Markets Group, a leader in providing financial market infrastructure and regulated markets for trading U.S. and international securities, recently unveiled its financial results for both the fourth quarter and the entire year of 2024. The results reflect a steadfast commitment to enhancing trading experiences and generating shareholder value.
“Throughout 2024, we concentrated on laying the foundation for future projects that are pivotal to our strategy. The rollout of OTC Overnight will facilitate trading in OTC securities, while MOON ATS enhances trading options for NMS securities,” explained R. Cromwell Coulson, President and CEO. “Moreover, the upcoming launch of our OTCID Basic Reporting Market will establish clearer distinctions among our markets and support companies that share crucial disclosures to their investors.”
Fourth Quarter 2024 vs. Fourth Quarter 2023:
- Gross revenues stood at $28.5 million, a 3% increase over the previous fourth quarter, with revenues remaining stable concerning transaction-based expenses.
- OTC Link revenues surged by 33%, driven mainly by a 56% jump in transaction-based revenues from OTC Link ECN and OTC Link NQB, aided by higher trading volumes.
- Market Data Licensing revenues remained flat compared to the previous year, reflecting a slight decline in professional user revenues while non-professional user revenues grew modestly.
- Corporate Services revenues dipped 6%, caused by reduced subscriptions to various markets and services, impacting overall performance.
- Operating expenses increased by 1%, attributed to rising compensation and IT service costs, albeit offset by a decrease in professional consulting fees.
- Operating income remained constant at $8.8 million, with net income rising by 3% to $7.2 million.
- Adjusted EBITDA climbed 2% to $11.0 million or $0.91 per adjusted diluted share.
Fiscal Year 2024 Results vs. Fiscal Year 2023:
- Gross revenues reached $111.1 million, reflecting a 1% improvement over the last year, while transaction-based expenses were consistent with prior year figures.
- OTC Link revenues rose by 14%, primarily due to an increase in trading volumes and fee adjustments.
- Market Data Licensing grew by 1%, aided by higher revenues from directly sold licenses and data solutions, though offset by a decrease in redistributor revenues.
- Corporate Services revenues fell by 4%, attributed to a decline in businesses subscribing to the company's services despite price adjustments.
- Operating expenses increased 1%, driven by higher staffing costs and IT expenditures, while certain consulting fees saw a significant decline due to one-off costs from prior years being absent.
- Both operating and net income dipped 1%, reported at $32.2 million and $27.4 million respectively.
- Adjusted EBITDA remained stable at $41.3 million, translating to $3.41 per adjusted diluted share.
Dividend Declaration: OTC Markets Group's Board of Directors has authorized a quarterly cash dividend of $0.18 per share. Shareholders can expect this payment by the end of March 2025, with the record date set for March 24, 2025.
Stock Buyback Program: The company has been authorized to repurchase shares periodically in compliance with applicable regulations, with a fresh program initiated, allowing repurchase of up to 300,000 shares.
Investor Relations: For further inquiries, please contact:
Antonia Georgieva
CFO
Phone: (212) 220-2215
Email: ir@otcmarkets.com
Frequently Asked Questions
1. What were OTC Markets Group's gross revenues for 2024?
The company reported gross revenues of $111.1 million for the year.
2. How does the fourth quarter of 2024 compare to the previous year?
In the fourth quarter, gross revenues were $28.5 million, a 3% increase compared to the same quarter in 2023.
3. What is the announcement made regarding dividends?
OTC Markets Group announced a quarterly cash dividend of $0.18 per share, payable in March 2025.
4. How much was returned to shareholders in fiscal year 2024?
The company returned $29.5 million to shareholders through dividends and share repurchases.
5. What are the future product launches to expect from OTC Markets?
The company is set to launch OTCID in July 2025 and enhance trading with OTC Overnight, both aimed at improving market clarity and performance.
